HRA Exemption Calculator

House Rent Allowance (HRA) is a component of your salary that helps cover rental expenses. The portion of HRA that is exempt from tax is the minimum of three values:

• Actual HRA received from employer
• 50% of basic salary (for metro cities: Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities
• Actual rent paid minus 10% of basic salary

This exemption applies under Section 10(13A) of the Income Tax Act and is only available under the old tax regime.

No. HRA exemption is not available if you opt for the new tax regime. Under the new regime, you give up most deductions and exemptions in exchange for lower slab rates. If your HRA and other deductions (80C, home loan interest, etc.) are large, the old regime may save you more tax overall — use the Income Tax Calculator to compare.

Yes. If your annual rent exceeds ₹1 lakh (₹8,333/month), you must submit the landlord's PAN to your employer along with rent receipts. If your annual rent is below ₹1 lakh, rent receipts are typically sufficient. In all cases, the rent payment must be genuine and the property must not be owned by you.

No. HRA exemption requires that you are actually paying rent for residential accommodation that you do not own. However, if you are paying rent to a family member (e.g., a parent), you may claim HRA — provided the rent payments are genuine, documented, and the family member declares it as rental income in their tax return.